JW Technologies, Inc. $($JWT$)$ is a $5-$year$-$old public company founded to develop new battery technology for various electronic devices. The company plans to license the technology and does not plan to invest in manufacturing facilities. The company has previously issued common shares and one bond issue to fund its activities.

The bonds have a remaining term of $20-$years, a $10\%$ semiannual coupon with a face $($par$)$ value of $$1,000.$ The bond may be called in $5$ years at a call price of $$1,050$ and currently sells for $$1,100.$

The stock currently sells for $$50/$share$.$ The company currently pays a dividend of $$1\mathrm{.}00/$share annually. The earning per share $($EPS$)$ is $$2\mathrm{.}00.$ Dividends and EPS are expected to grow $8\%$ per year. The company currently uses a discount rate of $10\%.$ The P$/$E ratio is expected to be the same as today in five years.

The company is considering a project to build a prototype machine using existing funds. The machine costs $$90,000$ and has delivery and installation costs of $$10,000.$ The company will fully use a building which it currently subleases for $$20,000.$ The company$$s lease obligation ends at the end of the project period.

Having the machine will increase royalties received by $$120,000$ per year for five years. Incremental expenses for the sales are $$25,000$ plus depreciation. The machine will be depreciated over five years and has a useful life of five years. The tax rate for JWT is $34\%.$ The current discount rate is $10\%.$ What is the Internal Rate of Return $($IRR$)$ for the project?